Sales and Use Tax Annotations

Annotation 425.0052.800

(a) GENERALLY

425.0052.800Foley Catheters and Arm Supports. Some hospitals elect to use products which generally may not qualify as a "medicine" in an application which is exempt by statute. For example:

(1) Foley catheters. Although customarily these catheters are attached to anatomical opening in the human body to drain waste (taxable), they are sometimes used for post-operative insertion through an artificial opening to drain waste (exempt).

(2) Arm supports. These are sometimes used as orthopedic supports in the nature of splints (exempt).

It was asked whether the hospitals should buy these items under an exemption certificate and accrue tax based on a ratio representing the taxable use of these products.

It would be proper for a hospital to use an exemption certificate for the purchase of items which will be exempt from tax under section 6369. To the extent any items purchased under an exemption certificate are used or sold in a manner so as to make them subject to tax, the hospital should pay tax on such items. 9/29/80.

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